The UK government has confirmed a major investment in domestic automotive manufacturing and supply chains, including support for a gigafactory in Somerset, as part of a wider £470 million DRIVE35 funding package.
Delivered through the Department for Business and Trade’s Automotive Transformation Fund (ATF) and facilitated by the Advanced Propulsion Centre UK (APC), the programme aims to accelerate the transition to zero-emission vehicles.
A significant portion of the funding – around £380m – has been allocated to Agratas, part of the Tata Group, to support the development of battery manufacturing capacity.
Earl Wiggins, vice president for manufacturing operations at Agratas UK, said: “This funding will support the development of our Somerset facility, enabling us to produce battery cells for our anchor customer, JLR (Jaguar Land Rover). Over the next year we will have over 2,200 people working on the site, and that growth will continue over the coming years.”
According to the government, once fully operational, the Somerset facility is expected to generate around £43bn in economic value over a 25-year period.
“This globally significant investment by Agratas reinforces the UK’s accelerating position in pursuit of road transport decarbonisation through the production of vital high-performance batteries for electrified vehicles,” said Julian Hetherington, automotive transformation director at the APC.
Alongside the gigafactory investment, a further £89.8m has been awarded across multiple DRIVE35 competition streams that support R&D, industrial scale-up and manufacturing across areas such as battery systems, power electronics, materials recycling and transport refrigeration.
The funding will support a range of UK manufacturers and SMEs, including projects involving JLR, Nissan and other industry players, with the aim of boosting domestic capability and reducing reliance on overseas supply chains.
Business secretary Peter Kyle stated: “This government is backing the industries of the future by investing in auto firms, SMEs and battery manufacturers across the country – helping to boost economic growth and our resilience, secure jobs and put more money in people’s pockets.”
The programme forms part of the UK’s broader industrial strategy to attract investment, create skilled jobs and secure long-term growth in zero-emission vehicle production.
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